Syeda Seirut Javed
2 min read
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The J. M. Smucker Company (NYSE:SJM) is one of the 13 stocks Jim Cramer recently shed light on. During the episode, Cramer discussed the impact of the company’s acquisition of Hostess Brands. He said:
“Meanwhile, usually strong stocks like Colgate or Procter & Gamble, they can’t get traction at all. Hey, two weeks ago, we got this quarterly report from J.M. Smucker. With a name like Smucker, it was horrendous, hurt by its ill-fated decision to buy Hostess Brands, the parent of Twinkies, right on the eve of the GLP-1. I am told that people who take GLP-1 are repulsed… by HoHos. They hate HoHos.”
A wholesaler distributing peanut butter, fruit spreads and specialty spreads to a retailer. J. M. Smucker (NYSE:SJM) produces a wide variety of branded food, beverage, and pet products, including coffee, spreads, baked goods, snacks, and pet food. The company’s offerings are sold under well-known names like Folgers, Café Bustelo, Dunkin’, Jif, Smucker’s, and Smucker’s Uncrustables, among others, through retail, online, and foodservice channels. Additionally, Cramer discussed the company on June 10 and said:
“But let’s look at the other way. Let’s talk about what old folks were interested in. There’s a company called J.M. Smucker. It makes coffee jams and pet food, Uncrustables, Twinkies. It’s covered by 15 different firms… It’s real. We’ve all bought their stuff. Two years ago, right at the time that the GLP-1 drugs came of age and we went nuts for the weight loss shots, J.M. Smucker didn’t seem to notice. They ran into the fire, they bought Hostess, that’s right, Hostess, maker of Twinkies, for $5.6 billion in November of 2023. Today, they took a $980 million impairment charge for that transaction. I doubt that’ll be the last one, as Twinkies and Ho Hos may not turn very well. Let’s just say they’re going nowhere. They also took a big hit from tariffs and higher coffee costs. Smucker’s talking about a 20% boost in coffee prices. That’s not going to help demand. In the wake of the news, the stock plunged more than 15%. Nearly every analyst who covers it had tough things to say about the business, all major firms.”
While we acknowledge the potential of SJM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
